PLDT, Globe: Philippine Competition Commission Has No Power To Undo San Miguel Sale

A logo of Philippine Long Distance Telephone Company (PLDT) is seen in front of their building in Makati city, metro Manila, Philippines May 30, 2016. The micro, small and medium enterprise (MSME) arm of PLDT Inc., has awarded the country’s next generation of digital business leaders at the #BeTheBoss Awards Night held on Sept. 9 at the Conrad Hotel Manila.
REUTERS/ Romeo Ranoco

Both firms said the Philippine Competition Commission (PCC) had no power to invalidate the sale.

In two separate statements, PLDT and Globe reiterated the buyout was deemed approved.

Both companies aimed for VTI’s radio frequencies and 700 megahertz band, which can improve Internet connection services in the country.

PLDT and Globe announced their joint acquisition of VTI on May 30 but PCC initially rejected their notice, even before the announcement, as reported by The Philippine Daily Inquirer. The commission asked both parties to resubmit notice.

PCC reasoned that the initial notice is "deficient and defective in form and substance" thus, the commission rejected the joint deal.

PLDT noted that its co-acquisition of SMC with Globe was considered approved.

"(It) cannot be subject to retroactive review by the Commission," PLDT added.

However, PCC has the power to stop deals that it determined would "substantially" lessen or restrict competition. This is to prevent any forms of abuse of certain parties dominating the market.

"The PCC cannot further comment on the transaction because we have returned the parties' submissions for non-compliance," The commission said in a statement. "As of this time therefore, there is no notice for the PCC to review."

“We emphasize that the transactions have not been deemed approved," it added.

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